• Categories
  • Archives

Brazilian Banks’ Profits Raise Market’s Boat

Latin American stocks were mixed to higher, with Brazilian and Mexican shares gaining on hopes the U.S. Federal Reserve will raise interest rates on Wednesday but then pause its tightening cycle at subsequent meetings. Argentine issues fell amid mixed earnings.

Brazil’s Bovespa Index rose 98.22 points, or 0.24%. Mexico’s benchmark Bolsa Index jumped 371.22 points, or 1.75%, while Argentina’s Merval Index dropped 22.29 points, or 1.18%.

Brazilian shares edged up amid optimism about local corporate earnings. A raft of companies are scheduled to report later this week including banks Banco Itaú and Unibanco, and companies Vale do Rio Doce and Eletropaulo.

Helping to buoy investor sentiment, Brazil’s largest private bank, Banco Bradesco, said today that its first-quarter earnings rose 27% to 1.530 billion reais.

Investors were also looking ahead to the U.S. Federal Reserve’s interest-rate decision on Wednesday. Investors will pick apart the Fed’s policy statement in search of any indication of whether a pause in the current U.S. monetary tightening cycle is likely at future meetings.

In other developments, a major investment bank cut its price target on Vivo to US$ 6.00 from US$ 6.50, citing the company’s "disappointing 1Q results."

Elsewhere, Mexican stocks surged to a record high, resuming a recent rally following a bout of profit taking on Friday. Shares were supported in part by optimism about the outlook for U.S. interest rates.

Argentine issues dipped amid mixed earnings news from local companies. Shares of Siderer dropped after the steelmaker reported late Friday that its first-quarter net profit fell to 324 million pesos from 425 million pesos a year earlier, due to higher operating costs.

Bucking the downtrend, however, shares of Petrobras Energia Participaciones rose after the oil and gas firm posted a first-quarter net profit of 365 million pesos, up sharply from 149 million pesos a year ago.

Thomson Financial – www.thomsonfinancial.com

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

The Art of Money

The next act is the presentation of the new, amended bill. It is still ...

Powder May Help Reduce Water Evaporation and Drought in Brazil

A chemical powder may be the solution to the water evaporation problem in lakes and ...

Brazil Cracks Down on Individuals Sharing Music on the Internet

The Brazilian Recording Companies Association (ABPD), which represents the main recording companies in Brazil, ...

Brazilian Journalist Hit by Home-Made Bomb. Political Motive Suspected

France-based international NGO dedicated to defend freedom of the press Reporters Without Borders (RSF) ...

Maria Christina Mendes Caldeira

Brazilian Elections: Hell Hath No Fury Like a Brasileira Scorned

What to do when your divorce is dragged out in long court proceedings… For ...

Eyes Wild Open

More than $1.4 billion was spent on Sivam, which consists of a monitoring system ...

A Mercosur summit on July 2006

Brazil and Neighbors Start Bank and Take Steps for Common Currency

Paraguayan President Nicanor Duarte and Mercosur ministers of Economy and Foreign Affairs decided Tuesday, ...

A Silver Lining for Brazil’s Agriculture: the Stronger Dollar

Agribusiness in Brazil has already been affected by the economic crisis, but at a ...

RAPIDINHAS

Meat Place By Brazzil Magazine Keyword search Books Music Full search: Books or Music ...

Brazil’s Industry to Hire and Invest More in 2005

The latest quarterly survey of Brazil’s manufacturing sector (Sondagem Conjuntural da Indústria de Transformação), ...